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38 Cards in this Set

  • Front
  • Back
Rule: Life Tenant Responsibilities
Life tenant is responsible for reasonable upkeep, including taxes
Rule: tax sales and future interests
A tax sale will cut off the rights of remaindermen
Future Interests: "so long as . . ."
Fee Simple Determinable

Ends AUTOMATICALLY, going to the next future interest or returning tot he grantor.
Rule: RAP and Interests Held by Grantor
RAP does NOT apply to interests held by the grantor.
Future Interests: "provided that . . ."
Fee Simple Subject to condition subsequent

Does NOT automatically come to an end. Must be a valid ejectment action.
Future Interests: "but if . . ."
Fee Simple Subject to Condition Subsequent

Does NOT automatically end. Must be subject to valid ejectment action.
Rule: Life Tenant and Mining
Life tenant cannot start mining since it would decrease the value of the property, UNLESS
1: express permission
2: open mines doctrine
MBE Shortcut: Fee Simple Determinable and RAP
In a fee simple determinable, the estate over will be VOID almost ALL of the time.

Revert to original grantor or whoever that has been transferred to.
RAP Fact Pattern: Fee Simple Determinable
Type: Convey to X in Fee Simple, so long as . . .

VOID if there is no way to determine when the condition would occur.
RAP Fact Pattern: Life Estate Series
To X for life, then to Y for life, then to Z for life, . . . then to Q in fee simple.

1: last person mentioned by proper name is OK
2: first group not mentioned by proper name is OK
3: everything after that is OUT
Rule: Class gift opening/closing
A class gift opens at the time of conveyance.

A class gift closes when ANY member has a right possess.
Rule: Interest timing and joint tenants
If you get yoru interests at different times, CANNOT be joint tenants
Rule: Conveying Property Held in Joint Tenancy
EITHER Joint Tenant has an absolute right to convey interests, but the joint tenancy will become tenancy in common.
Rule: Lease Contracts and Property Sales
A landlord does not escape responsibilities under a lease by selling the property.

A buyer of leased property is responsible for all promises made to the tenant that
1: the purchaser agrees to accept; OR
2: that run with (touch and concern) the land.
Rule: dealing with holdover tenants
Will be a commercial lease on the MBE as residential leases vary.

Landlord can either eject or hold tenant to a periodic lease.
1: if tenant notified of rent increase, increased rent applies
2: if original lease was more than one year, new lease will be year-to-year
3: if original lease was less than one year, new lease will be determined by the period of payments.
Rule: assignment of leases and liability
Assignment of a lease occurs when a tenant transfers his entire interest.

1: an assignor of a lease REMAINS liable
2: an assignee of a lease is liable ONLY for the period of time they have the right to be on the property (until a reassignment occurs)
3: a sublease does not shift liability.
Rule: easements and conveyances
An easement is a valid interest and will be enforced. It may be conveyed.

If property subject to easement is conveyed, the new buyer will be subject to the easement if he had:
1: actual notice (told or in deed)
2: record notice (in past deed)
3: inquiry notice (reasonable person would have inquired)
Rule: subdivision plans
Similar to easements. Buyer must honor if he had notice.

Same notice conditions as easements, plus record notice if the plan was recorded in a state that allows such.

Anyone bound by the restriction may sue to enforce it.
Rule: Tenants and Fixtures
The basic rule that fixtures become part of the property does NOT apply to fixtures installed by tenants.
Rule: Equitable Conversion
Buyer bears risk during the period between the signing of a contract and closing. (although many states have changed by statute)
Rule: providing marketable title
There is an implied warranty to proivide a marketable title at closing. Marketable is a title that a reasonable person would accept.

TWO types that are NEVER marketable (and common on MBE)
1: gap in the record chain of title that seller can't clear up
2: title acquired in whole OR IN PART by adverse possession WITHOUT a judicial determination of title.
Elements: Adverse Possession
1: open and notorious
2: exclusive
3: hostile
4: continuous

***can obtain an easement through adverse possession***
Rule: adverse possession and mental competancy
mental incompetancy arising after adverse possession has started does NOT toll the running.
Rule: Recording Deeds and Delivery
Recording creates a PRESUMPTION of delivery. Presumption is rebutable.
Rule: Meets and Bounds Description
A valid description must end up where it started.
Rule: Imperfect Tender
If the seller tenders at closing something less than promised, the buyer has the option to accept but deduct from the purchase priced something reflecting the diminished value.
Rule: rights of first refusal
Are valid and will be enforced.
Define: Pure Notice Recording Act
if the party to receive the first conveyance fails to record, a subsequent purchaser will take superior title REGARDLESS of who records first.
Define: Race Notice Recording Act
if the party to receive the first conveyance fails to record and a second conveyance is made, the first party to record has superior title.
Basic Rules: Recording
1: anyone lending money on a piece of property with a mortgage will be treated like any other purchaser for recording purposes
2: judgment creditors cannot benefit from a failure to record
Define: Shelter Rule
if a person takes superior title under any record statute, they can convey, even to someone who knows about the previous problems
(a grantee from a bona fide purchaser is protected as a bona fide purchaser, even though the grantee would not otherwise qualify for this status)
Rule: Paying off secured promissory notes
Promisory notes are freely transferable.

If you pay off a promisory note that has been secured by a mortgage, and pay the wrong person because the note has been transfered, STILL LIABLE.
Which mortgage holders may foreclose?
Any mortgage holder who has not been paid has a right to foreclose.
Which mortages are removed at a foreclosure sale?
the foreclosing mortgage and all junior mortgages.

Senior mortgages remain on the land.
How are foreclosure sale proceeds distributed.
Proceeds of the sale go to the forecloser, then remaining amounts to junior mortgages.
What recourse does a mortgage holder have who is not fully paid in the foreclosure sale?
If a mortgage holder is not fully paid, they can sue the borrow for the deficiency, but no longer have a lien.
Rule: Junior Mortgage holder Rights
If a mortgage is foreclosed, a junior mortgage holder has a common law right to pay off the senior holder and assume rights.
Rule: Riparian Rights
an upstream owner can use all the water necessary for domestic use (natural use).

He will ALWAYS prevail over a downstream owner who makes commercial use.